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HomeMy WebLinkAbout04.14.08 Work Session Minutes Council Workshop Minutes April 14, 2008 Audience: Pritzlaff, Fogarty, McKnight, Wilson Joel Jamnik, Peter Herlofsky, Robin Roland, Kevin Schorzman, Randy Distad, Tony Wippler, Lee Mann, Cynthia Muller Peter Gualtieri, Peter Coyle, Daren Laberee, Ross Gresher, Shelly White, Brian Johnson, Doug Bonar Present: Also Present: Acting Mayor Pritzlaff called the workshop to order at 6:30 p.m. MOTION by McKnight, second by Wilson to approve the agenda. APIF, MOTION CARRIED. City Administrator Herlofsky gave Council and update on miscellaneous items. Fairhill Development The Fairhill Development was discussed at the March 3, 2008 Council meeting. The purpose of the workshop was to discuss the master PUD Agreement, the preliminary plat for the first phase, the schematic PUD and site plan, and the comprehensive plan amendment. This will be a 20- year project. The PUD Agreement is very complex and covers funding sources for the roundabout at 195th Street and TH3, 195t1i Street assessments, etc. Council reviewed the PUD Agreement and commented as follows: Article 3 - Preliminary and Final Plat, Phase 1 The preliminary plat will be good for 5 years and subsequent phases will be good for 2 years. If nothing happens within the first five years, they would have to resubmit the plans. Regarding assessments, Finance Director Roland presented options for 15-year or 20-year bonds. The City has already spent approximately $950,000 on this project. Part of it has been reimbursed by Dakota County and the developer. The options reflect the first five years of bond payments being made by revenues from the county for the construction of I 95th Street. The balance of the 15 years would be covered by assessments coming from the developing parcels as they are phased in from the developer. By 2013, there would have to be 138 units built to pay the assessment amount. The developer is building 195th Street and the park upfront. The City is assessing at .5% higher than the bond rate, because the developer is contributing the entire 150 ft. of right-of-way and the amount of parkland being dedicated upfront. Article 6 - Streets Council asked why the developer is not required to post a letter of credit for the construction of 195th Street. City Attorney Jamnik explained the land dedication for the park and the road, as well as the assessments, secures the City's exposure. Article 7 - Utilities Council noted no trunk sanitary sewer fee nor City sewer availability charge will be imposed against the property. City Attorney Jamnik explained the development is self-contained and would not impact external lines to the development. Therefore, they would not receive a credit or a charge for the impact outside of their boundary. This might be revised. Council Workshop Minutes April 14, 2008 Page 2 Article 14 - Responsibility for Costs Council had a concern with allowing the developer 45 days to pay bills from the City when the normal practice is 30 days. Mr. Peter Gualtieri, representing Astra Ventures, which is a private company owned by the Seed family, stated there are two distinct entities involved in the development ofthe project. There is the land owner, which is the James Michael Seed Trust, and then there is the developer. The developer has an option to purchase the property in phases from the land owner. The developer until recently has been the Astra-Genstar Partnership. Astra is the company the Seed family owned, and Genstar is the company that was purchased by Newland in 2000. Recently, Newland offered to the Seed family to buyout their position in the project. This transaction will close soon. Then the developer will be Astra Ventures, which will be 100% owned by the Seed family. The City will then deal with the Seed family and Peter Gualtieri as the Project Manager. The Astra Ventures operation is financed by Wells Fargo bank. Mr. Jim Seed wanted Council to know they have 100% commitment from the Seed family to continue with prior commitments, such as dedicating the road and the park. Astra will develop the property when there is a demand for housing. City Administrator Herlofsky noted, even if no units are built, the property will develop eventually, and those assessments will stay with the property. The worst that could happen is that it could take longer, and the City would have to levy for the amount. If all the acres are sold, all the assessments would have to be paid at the time of sale. Mr. Gualtieri stated they will propose what the market wants phase by phase. The land plan does not change; streets, parks, trails, nothing changes. That is guaranteed by the PUD Agreement. The housing type and private amenities will be determined by the market. City Administrator Herlofsky noted the developer is also contributing to the TH3 roundabout. Mr. Gualtieri stated he would be talking with builders that have the financial capability for a large project like this. The Preliminary Plat, Comprehensive Plan Amendment, Schematic PUD, and the Site Plan will be brought to the April 21, 2008 Council meeting for approval. The Final Plat for the right-of- way for 195th Street will be taken to the Planning Commission and City Council in May. The City is advertising for bids for the construction of 195th Street, and will award the contract at the May 19, 2008 Council meeting. 2009 Budget Regarding the 2009 budget process, Acting Mayor Pritzlaff asked when the process would start. Last year he felt the process was very good with a lot of workshops. He suggested each Councilmember give staff a levy amount or a dollar amount, and staff give options back to Council. A schedule for the process will be developed this week. Councilmember McKnight did not want staff to get too far ahead before Council gives them a goal. MOTION by Fogarty, second by McKnight to adjourn at 7:51 p.m. APIF, MOTION CARRIED. Respectfully submitted, /1..+/_ /?d /~lrl~ CCynthia Muller Executive Assistant